Export Grants

The Export Market Development Grants (EMDG) scheme can reimburse up to 50 per cent of eligible export promotion expenses above $5,000.

The EMDG scheme encourages small- and medium-sized Australian businesses to develop export markets.

In March 2016 the Government made changes to the Export Market Development Grants Act 1997 that affect some expenditure categories.

These changes relate to expenses incurred from 1 July 2016 onwards, and apply to businesses intending to lodge an EMDG claim from 1 July 2017.

The changes to the Export Market Development Grants Act 1997 that will affect the eligibility of expenses incurred from 1 July 2016 (and claimed from 1 July 2017) are:

Communications costs have been removed as an eligible expenditure category

A limit of $15,000 has been placed on the free sample expenditure category, noting that for claimants that are combining two years of expenditure, and one of these years is the 2015-16 financial year, no limit applies

The provision for the reimbursement of in-country travel (other than airfares) has been repealed and the amount of the daily allowance for overseas visits has been increased to $350 (from $300)

The list of excluded expenses now includes those expenses relating to eligible promotional activities, things or eligible products that may have had a detrimental impact on Australia’s trade reputation.

With the exception of the “free sample” cap, these changes apply from the 2016–17 grant year onwards, and will therefore also apply to year 1 claims for that grant year that are combining two years of expenses.

Recipients for the 2016–17 grant year who have an entitlement up to and including $40,000 will be paid in full. Those with entitlements above this amount will receive a second tranche payment at the end of June 2018, the size of which will be determined at that time.